BitGo Named Issuer for FYUSD, an Asia-Focused Stablecoin
Digital asset firm New Frontier Labs has entered into an agreement with BitGo Bank & Trust National Association, which crypto infrastructure provider BitGo will use to issue and provide custody for the FYUSD stablecoin, a dollar-pegged token aimed at institutional clients in the Asia region.
BitGo said FYUSD meets the requirements of the GENIUS Act stablecoin regulatory framework, including 1:1 backing with cash deposits held by a custodian or short-term U.S. government debt instruments, along with anti-money laundering (AML) and know-your-customer (KYC) controls.
Some of the requirements for a regulated dollar-pegged stablecoin under the GENIUS framework. Source: Cointelegraph
The company also introduced “Fypher,” a suite of stablecoin infrastructure tools that adds a programmable settlement layer for FYUSD, enabling use by autonomous AI agents for commercial transactions.
U.S. Treasury Secretary Scott Bessent has described stablecoins as a means to support U.S. dollar leadership by accelerating settlement, reducing transaction costs, and expanding access to dollars for individuals without traditional banking services.
Stablecoin market cap has eased from the peak above $300 billion
The combined market capitalization of stablecoins stands at over $295 billion at the time of writing, according to RWA.XYZ, down from the peak of more than $300 billion recorded in December.
Tether, issuer of the USDt (USDT) dollar-pegged token, is on track for its sharpest monthly decline in circulating supply since the collapse of the FTX crypto exchange in 2022. As of publication, circulating supply was 183.64 billion USDT, CoinMarketCap data showed.
While USDT remains the largest stablecoin by market capitalization, its circulating supply is down $1.5 billion so far in February, according to Artemis, following a $1.2 billion decrease in January.
Increased redemptions can indicate a broader contraction in the digital asset market as investors unwind positions and move funds off-chain.
Representatives for Tether said the figures reflect short-term positioning rather than a sustained trend of outflows or market contraction.
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